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dependence on Russian gas by about a third.
Lithuania transports oil about 77% full, and the gas in them would Serbia mulls plans to build
The country’s gas storage facilities are now
products to Ukraine via cover consumption until about January 2023. 1bn cubic metre gas storage
Using gas from the LNG terminal, the Czech
Poland, bypassing Belarus Republic would probably last until March next facility in Itebej
year.
The state-run Lithuanian Railways is “Europe is currently trying to increase its Serbia is mulling plans to build a gas storage
transporting oil products for Ukraine via gas import options from outside Russia. New facility with capacity of 1bn cubic metres in
Poland, successfully avoiding Belarus, Ukraine LNG terminals are being built to receive gas Itebej in the country’s northeast or at another
Business News reported on July 21. from overseas. Logically, there is now a great location in 2023, with an investment of about
Orlen Lietuva produces the oil products demand for LNG and the Czech Republic, €200mn, media reported citing Deputy PM
which are then transported by the LTG Cargo which has no sea, needs to secure capacity and Energy Minister Zorana Mihajlovic as
company between Lithuania’s Močkava in a coastal state … And this is what we have saying.
terminal and Poland’s Trakiški terminal, now succeeded in doing in co-operation with The potential project is part of Serbia’s
reported the Lithuanian publication Obzor.lt. CEZ Group,” said Sikela, quoted by the Czech efforts to provide energy security amid the gas
From Poland, the products travel to Yahodyn Radio. crisis caused by the Russian war in Ukraine.
in Ukraine – Polish carriers and the Ukrainian “The plan is to build a new storage facility
Railway transport them through this section. that will be owned only by Serbia, in Itebej
The company plans to transport cargos Markets await word on whether or at other location, whose capacity would
two or three times a week, and by the end of be 1 bcm, and the value of the investment
summer, their monthly volumes will reach Putin will agree non-dollar is estimated at around €200mn,” Slobodna
30,000 tonnes, according to LTG. In recent Evropa, cited Mihajlovc as saying on July 18.
weeks, 12 trains with more than 12,000 tonnes payments from Turkey for The construction is expected to be finished
of oil products have left for Ukraine along this within one year.
route. energy supplies Serbia has only one gas storage facility,
Ukraine spent $3.3bn on oil products in located at Banatski Dvor, which is partially
the first six months of the year, 56.3% higher The markets are awaiting the outcome of owned by Russian state-run Gazprom.
than the same period in 2021. However, the talks between Turkey and Russia on Ankara Mihajlovic said earlier this month that
physical volume of imports has decreased by paying Moscow for Russian energy supplies in Serbia will secure at least 30%-40% of gas
14.7% to 3.2mn tonnes, according to the State currencies other than the dollar. supplies from alternative suppliers to Russia
Customs Service. A Bloomberg report suggested the matter and that authorities are doing everything
The top countries were Belarus at was set to be raised when Turkish President to ensure sufficient quantities of gas for the
$753.6mn (23.11%), Russia at $569.6mn Recep Tayyip Erdogan met Russian President upcoming winter.
(17.47%) and India at $283.6mn (8.7%). Other Vladimir Putin in Tehran on July 19. Serbia is currently dependent on imports
countries made up $1.7bn (50.72%). The move could conceivably further of Russian gas.
Ukraine’s oil exports dropped by 78%, policies of both countries—Russia would
partly exacerbated by an impending fuel crisis make another step in its policy of applying
for this heating season. Ukraine banned the de-dollarisation to international trade and Hungary’s economy most
export of fuel, oil, gas and coal last month, Turkey—hard-pressed for FX reserves—
instead saving them for domestic use to could slow down the decline in the financial vulnerable to Russian gas shut-
prepare for the winter period. firepower it holds as it continues with its fight
Ukrainian President Volodymyr Zelenskiy to defend the Turkish lira, which has collapsed off, IMF says
also urged the government and local in value in recent years.
authorities to keep the cost of utilities down Russia provided a quarter of Turkey’s oil The International Monetary Fund (IMF)
to pre-war levels to help citizens financially imports and 45% of its gas imports last year. has warned that a complete cut-off of
affected by the war during winter. That gave it a huge surplus in bilateral trade in Russian gas supplies to Europe could plunge
excess of $20bn. countries most reliant on Russian energy
The de-dollarisation mechanism under into a deep recession, with GDP falling as
Czechia reduces its dependence consideration could allow Turkey to use much as 5-6%.
In a paper issued on July 19 evaluating
pound sterling for energy imports from
on Russia by securing gas Russia, with some payments in lira, which the impacts of disruptions of supply, it
Moscow could use to finance Russian
named Hungary, Slovakia and the Czech
capacity via Dutch LNG terminal purchases of goods and services from Turkey, Republic as the three EU countries likely to
suffer most, but Italy, Germany and Austria
according to Bloomberg.
Czechia has secured through its state-owned Russian economist Alexander Isakov told could also face significant downturns.
energy company CEZ 3bn cubic metres of the news service that if the deal went ahead Russia has been the largest supplier of
annual gas capacity via an LNG terminal in it might “mean less pressure on its [Turkey’s] gas to the EU, accounting for more than
the Netherlands, said the Czech Industry currency as it [Ankara] will be able to finance 40% of imports.
Minister Jozef Sikela. This will extend gas part of its foreign trade deficit locally”. According to IMF data, Hungary’s
consumption in the Czech Republic by one economy is the most vulnerable. State-
and a half to two months and will reduce owned gas giant Gazprom accounts for

Week 29 25•July•2022 www. NEWSBASE .com P13